Citigroup Inc. (C) is expanding its retail banking activities in Russia by acquiring a part of the Russian banking business of HSBC Holdings Plc. (HBC). The sale, which is expected to be completed in the third quarter of 2011, involves assets worth about $10.7 million.

HSBC divestiture is part of its effort to concentrate on its commercial and wholesale banking operations. In this context, HSBC had announced the intention to close its retail and private-banking units in Russia in April.

The expansion is a strategic fit for Citi, which is aiming to grow its business in international markets. The company’s core business unit, Citicorp, generated 62% of its revenues and 72% of its net income from its international operations in the first quarter of 2011.

Recently, Citi also announced definitive agreements with China’s Orient Securities Company Ltd. to form a securities joint venture to operate in that domestic market. The joint venture, in which Citi will own a 33% stake and Orient will own the remainder, will carry out investment-banking business in the Chinese domestic market, including equity and debt underwriting as well as advisory services. With this, Citi joined other Wall Street biggies such as J.P. Morgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS) to foray into the Chinese market with joint ventures.